Feldstein: FOMC Looking For Excuses Not to Raise Rates

The transcript discusses the Federal Reserve's considerations on tightening interest rates amidst rising inflation pressures. It highlights differing opinions within the Fed, particularly between Stanley Fischer and Lael Brainard, and the potential political and economic risks of raising rates. The Fed's strategy appears to aim for higher inflation to allow future rate cuts if needed. The transcript also addresses the adverse effects of low rates on investors and the challenges in accurately modeling inflation and growth. Finally, it touches on the role of asset prices in driving economic recovery and reducing unemployment.

What are the potential adverse consequences of maintaining low interest rates according to the discussion?

What strategies does the Fed have in place to manage inflation and economic downturns?